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Can I charge an automatic penalty fee on a Credit Package?

Credit Packages can charge an automatic penalty fee

Leah Cullins avatar
Written by Leah Cullins
Updated over a week ago

Credit Packages can charge an automatic penalty fee, loss of credit, both, or neither.

Video: Credit Package Penalties


Enabling Penalty Fees

Credit Type

First, you must toggle on Penalty Fees for the Credit Type associated with the Credit Package by going to Products > Credit Type > Edit.

For new Credit Types, the Penalty Fee toggle will be turned on by default.

To create a no-penalty Credit Package, toggle the Penalty Fees off. This prevents fee setup and ensures customers aren't charged.


Credit Package

To select the type of Fee for the Credit Package, go to Products > Credit Package > Edit or create a new one.

Under Penalty Fee, select one of the four options:

  • Loss of Credit: When a customer late cancels or no shows, they will lose the credit they used to make their reservation

  • Charge: When the customer cancels late or no shows, they will be given their usage back, but will be charged your studio’s late cancel or no show fee.

  • Loss of Credit & Charge: When the customer cancels late or no shows, they will lose their usage AND will be charged your studio’s late cancel or no show fee

  • No Fee: When the customer cancels late or no shows, they will return their usage and not be charged any penalty fees.

You can set any fee type on a Credit Package, but penalties are only collected if the penalty toggle is enabled on the Credit Type. Credit Packages with No Fee won’t collect penalties, regardless of the toggle setting.


Credit Card Requirements

If a credit package is configured with monetary penalty fees, whether that be a charge or loss of credit and charge, a customer will be required to have a card on file at the time of purchase.

A customer with an active package with monetary fees will not be able to delete their card until another card is added first.


Complimentary Credits and Credit Gift Cards

At this time, complimentary credits and credit gift cards, physical and email, will have a loss of credit penalty, regardless of the credit type setting.


Editing Penalty Fee

If penalty fees are enabled while editing and the credit package has been sold to customers already, no-show and late cancellation fees will be charged for each penalized reservation.

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